Main Office
3773 Cherry Creek North Drive, #575
Denver, Colorado 80209
Phone: 303.296.3666
Fax: 303.296.9996 |
CLOSING COSTS
It is customary in Colorado for the Title Company to prepare settlement sheets for the parties which itemize all of the credits (deposits) all of the debits (charges) due to and from each of the parties. The Settlement sheets are typically prepared after the Title Company receives input from the Buyer’s lender of the amount of the loan and the amounts that the lender is charging the Buyer for the loan. Lender fees include such things as: interest until the end of the current month, document preparation fee, underwriting fee, credit report, and appraisal.
It is customary for the Lender to contact the Buyer and advise the buyer of the closing costs and fees; i.e. the total amount that the Buyer needs to bring to the closing table. This amount includes the Buyer’s down payment and all of closing costs and fees less the amount of the earnest money deposit, which is a credit to the Buyer. The amount that the Buyer has to bring to the closing should be in the form of a cashier’s check. It is my advice that the Buyers have the check made out in the name of the Buyer and then endorse the check over to the Title Company at the end of the closing – when the Buyer knows that all that has gone well.
Common items to be paid at the closing are: transfer taxes and recording fees; title insurance premium and endorsements; survey or improvement location certificate; loan discount points; attorney fees; and various lender fees for underwriting the loan and preparing the legal documents.
When you apply for a loan, the lender has an obligation to provide to you a Good Faith Estimate (GFE) of the costs that you will have to pay. Under requirements of the Real Estate Settlement Procedures Act (RESPA), the mortgage banker or mortgage broker must deliver or mail the GFE to the applicant within three business days after the application is received. Thus, the amount of the closing costs should not be a surprise to you. |
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